Australia's workforce will radically change over the next four decades.
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The latest Intergenerational Report released on Thursday found the proportion of people taking part in the workforce will gradually decline from 66.6 per cent now to 63.8 per cent in 2062/63 as the population ages.
Among those with a job, average hours worked is expected to fall to 31 a week within four decades.
But it is expected there will be more women and migrants in work, with a significant number of older Australians also working.
In terms of the jobless rate, it is expected to remain relatively stable over coming decades, currently projected to be 4.5 per cent by 2024/25.
The government plans to release a white paper in September that will discuss its full employment strategy.
The report noted gender inequality continued to hold women back from work, despite a narrowing of the gender gap in participation from more than 32 percentage points in 1982/83 to about nine percentage points in 2022/23.
Higher education levels, a rise in services-based jobs and having fewer children was driving higher participation for women.
But unpaid work and caring responsibilities continued to be a barrier, which the government is seeking to address through paid parental leave and childcare subsidy changes.
"The continuation of long-run economic, demographic and social trends is projected to see the participation gap between men and women narrow further to around seven percentage points in 2062/63," the report said.
"Reducing barriers to women participating in the labour force will be crucial to further closing the gender participation gap and unlocking the full economic potential of women."
Part-time work is expected to account for about a third of all jobs within four decades.
The report shows some groups still face barriers to finding work.
The share of Aboriginal and Torres Strait Islander people in employment remains lower than for other Australians, despite a slight narrowing over the past 30 years.
And there has been a persistently low employment rate for people with a disability.
As for the types of jobs expected in coming decades, four service industries - health care and social assistance; professional, scientific and technical services; education and training; and accommodation and food services - are set to account for most of the nation's jobs growth.
Australian Associated Press
